A REPORT ON MARKET POTENTIAL OF MARS CHOCOLATE IN INDIA

SUBMITTED BY

GROUP-9DEEPAK KS

GANESH BAHADUR MAHARAMAHENDRA KUMAR JAIN

RAHUL ALCANTHER GRAVI T SHARMA

SUMAN MAHAPATRO

SBM JAIN COLLEGE

JAIN UNIVERSITY

SECTION-E

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TABLE OF CONTENTS

CHAPTER NO.

CHAPTER NAME PAGE NUMBER

1 INTRODUCTION 3

2 MARKETING MIX OF MARS CHOCOLTES

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3 IMAGES OF MARKETING MIX 6

4 SWOT ANALYSIS 12

5 COMPETITOR ANALYSIS 13

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INTRODUCTION

Mars, Incorporated is an American manufacturer of confectionery, pet food, and other food products with US$30 billion in annual sales in 2010, and is ranked as the 5th largest privately held company in the United States by Forbes.  Headquartered in McLean, unincorporated Fairfax County, Virginia, USA, the company is entirely owned by the Mars family.

Mars was founded by Frank C. Mars and is a company that is known for the confectionery items that it creates, such as Milky Way, M&M's, Twix, Skittles, Snickers, and the Mars bar. They also produce non-confectionery snacks and other foods as well as pet foods.

Orbit gum is among the most popular brands, managed by the Mars subsidiary brand Wrigley. Coming to India Mars has its presence in the form of candy bars and confectioneries. Many Indian enjoy the foreign chocolate offered by Mars through import. Imported chocolates are gaining popularity in India especially from the mature and affluent population despite high prices.

CHOCOLATE MARKET IN INDIA

The chocolate market estimated at around 33,000 tons valued at approximately Rs.8 billion. The counter market is estimated nearly Rs.2.5-3.5 billion and the rest is made up of chocolate bars. Chocolates make up less than a fourth of the sweet tooth products including sugar-boiled confectionery, mints and chewing gums. To push sales chocolates major have been targeting adult audience. Chocolates are being represented as snack food for new audience. Another strategy sought was the introduction of smaller editions.

After the worm controversy in October 2003, there was a meltdown in chocolate sales.

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MARKETING MIX OF MARS CHOCOLATES

The marketing mix is a business tool used in marketing products. The marketing mix is often crucial when determining a product or brand's unique selling point. When marketing their products firms need to create a successful mix of:

Product Price Place Promotion

These variables are also known as the 4 P’s of marketing. These four variables help the firm in making strategic decisions necessary for the smooth running of any product / organization.

PRODUCT

The first thing you need, if you want to start a business, is a product. Therefore Product is also the first variable in the marketing mix. Product decisions are the first decisions you need to take before making any marketing plan. The Chocolates of Mars Inc. have variety of brands. They are as follows

Snickers Milky Way

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Mars Bar Skittles Starburst Twix Dove M&M’s

By looking at the position of foreign brands being consumed in India currently, mars will need to take cues from the top brands as rated by the consumers on various parameters. In terms of product attributes such as softness, taste, assortment, and pack size it is just competing with its competitors.

Snickers is a main product of Mars chocolate and it is named as healthiest chocolate with high calorie content and less carbohydrate content, it contains lot of peanuts. So what we saw is the Snickers have more demand in the market.

The three reasons for purchase these types of chocolates are

Self consumption Gift purpose Special occasion

For satisfy this wants and needs of the customers Mars India is coming up with same product with change in size and packing style and best offers.

PRICE

Pricing of a product depends on a lot of different variables and hence it is constantly updated. Major consideration in pricing is the costing of the product, the advertising and marketing expenses, any price fluctuations in the market, distribution costs etc. Many of these factors can change separately. Thus the pricing has to be such that it can bear the brunt of changes for a certain period of time. However, if all these variables change, then the pricing of a product has to be increased and decreased accordingly.

According to our survey the price of various chocolate brands of Mars are relatively high compared to its competitors. One year before the Snickers starting price was Rs.30 per bar but now it available at Rs.15 in the market. Other brands are available for Rs.5 i.e., Mars. As now price is decreased for the chocolates customers started to buy the products and the brand is slowly capturing the market.

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PLACE

Place refers to the distribution channel of a product. If a product is a consumer product, it needs to be available as far and wide as possible. The place where the product is distributed depends on the product and pricing decisions, as well as any STP decisions taken by a firm.

As per the survey Mars don’t have effective distribution. In small or rural areas Mars brand chocolates are not available. They are highly preferred urban, city and metropolitan cities. Customers who are staying away from cities are not able to get the products. For that Mars coming with new strategy that they started to see towards rural markets and small markets so that every customer can have their product.

PROMOTION

Promotions in the marketing mix include the complete integrated marketing communications. Promotions also decide the segmentation targeting and positioning of the product. The right kind of promotions affects all the other three variables – the product, price and place.

As per the survey the promotion of Mars chocolate brands are not effective and people are unaware of which brands are authentic. They feel that adequate promotion would dispel their fears. Promotion should be in such a way that consumers are clear chocolates is authentic and genuine. They are not at all promoting their product to the population which is under 12 ages. Mars chocolates are giving more importance to the brand and quality.

Mars started effective communication though advertising and other sales promotion activities. New advertisements for the Mars bar are targeted at younger people, and now focus more on emotional satisfaction related to the consumer belief that 'a Mars bar just makes me feel good about life right now'. The result is that the Mars bar has already largely shed its former image as a hefty, hunger-busting mouthful and has become more of an everyday treat.

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IMAGES OF THE MARKETING MIX

PRODUCT

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PRICE & PROMOTION

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PLACE

Highly available in the retail shops and Bazaars. Less available in small shops

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SWOT ANALYSIS

STRENGTHS

Mars products outsells chocolate candy market internationally Variety of products available Highly brand preference Asset leverage Effective supply chain Sponsors global football team International brand name Great taste and packing

WEAKNESSES

Less promotion for some brands Low sales percentage in domestic market Constantly changing campaigns Low research and development Not easily available Expensive chocolates

OPPORTUNITIES

Tap growing cities and retail chains Have more variety and smaller gift packages Growing interest in dark chocolates Financial markets (raise money through debt, etc) Product innovations

THREATS

Intense competition Cheaper technology Price wars Calorie conscious people

COMPETITORS ANALYSIS

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Major competitors for Mars chocolates are

Cadburys 5 star

Among this Cadburys is the major competitor for Mars chocolates. The comparisons are as follows.

Cadburys products are available at different locations and even small shops where as Mars chocolate are available only in retail shops

Cadburys are have effective communication about their product and also have more promotional strategies than Mars

Cadburys products are available in the market for fewer prices where as Mars chocolates are relatively expensive.

Mars is having only a strength compared to Cadburys is the healthy product

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CONCLUSION

The Indian Chocolate Industry is a unique mix with extreme consumption patterns, attitudes, beliefs, income level and spending. Mars is the largest chocolate manufacturing company but in India its market value is relatively low comparable to its competitors.

Market mix of the Mars chocolate according to our survey Variety of products offered to the customers, known as healthiest chocolate Price is high compared to others as Mars chocolate price starts Rs.15 Promotion is low for some products and lack communication with consumers It is not available in all market. they are more focused on retail shops for market their

product

Last but not least Mars chocolate is coming with new promotional activities with variety of products and also started to sell their products in small shops with reducing the prices for its products. The R&D of Mars has still not understood the Indian taste buds.

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